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Alibaba to open e-commerce hub in Belgium

By Sarah ChenChina
1 min read
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Alibaba Group Holding Ltd has signed an agreement with the Belgium government to launch an e-commerce trade hub, which will include investments in logistics infrastructure. The project is part of Alibaba’s Electronic World Trade Platform (eWTP), and Belgium is the first European country to join the project following similar agreements in Malaysia and Rwanda.

Alibaba’s logistics arm, Cainiao, will lease a 220,000 square meter logistics port at Belgium’s Liege airport as part of the deal and invest an initial 75 million euros ($85 million) in the project set to begin operations in 2021, it said.

“We strongly believe that under the eWTP, we will open up the huge potential for European businesses to reap the benefits of global cross-border trade, especially into the China market,” Alibaba CEO Daniel Zhang said in a statement.

Alibaba’s eWTP is designed to help countries reduce trade barriers for e-commerce trade, including lowering or eliminating tariffs and speeding up customs clearance.

The company has previously said the project is designed to “compliment” the World Trade Organization (WTO).

Alibaba is expanding the project to Europe amid wider trade tensions, which have forced the firm to back down from efforts to tap U.S. sellers.

Recently, Alibaba Chairman Jack Ma said previous plans to create a million jobs in the United States had been put on ice due to trade tensions, according to Chinese state media.

Questions & Answers

Q.

What is the primary purpose of Alibaba's eWTP initiative?

A.

Alibaba's eWTP aims to help countries reduce trade barriers for e-commerce, such as lowering or eliminating tariffs and accelerating customs clearance processes. The project is designed to complement the work of the World Trade Organization.

Q.

Which specific part of Alibaba will manage the logistics for the Belgian e-commerce hub?

A.

Alibaba's logistics arm, Cainiao, will be responsible for managing the logistics infrastructure. Cainiao plans to lease a 220,000 square metre logistics port at Liege airport in Belgium as part of this new agreement.

Q.

What is the initial financial investment Alibaba is making in this Belgian project and when is it expected to begin operations?

A.

Alibaba is investing an initial 75 million euros ($85 million) into the project. The e-commerce hub is set to begin its operations in Belgium during 2021, according to the agreement details.

Q.

Why is Alibaba focusing on expanding its eWTP project in Europe now?

A.

Alibaba is expanding the eWTP project into Europe amidst broader global trade tensions. These tensions have previously forced the company to step back from efforts to engage US sellers in similar initiatives.

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